Daily Wrap-up: Oil slips from 2016 highs

by Steve Randall02 May 2016

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Daily Wrap-up: Oil slips from 2016 highs

Oil slips from 2016 highs
Oil prices were pressured Monday as data showed that OPEC countries and Russia were producing at near-record levels, erasing much of the effect from lower US output and the rising greenback.

Energy stocks on the main TSX index led the losses while telecoms gained on news that Manitoba Telecom has been acquired by BCE.

Asian markets saw a sell-off with Japan’s Nikkei dragged down by more than 3 per cent.

European markets closed mixed although Frankfurt and Paris closed higher. London was closed for a public holiday.

Wall Street closed with gains despite concern over another day’s decline for Apple.

The S&P/TSX Composite Index closed down 85.82 (0.62 per cent)
The Dow Jones closed up 117.5 (0.66 per cent)
Oil is trending lower (Brent $45.95, WTI $44.89 at 5.10pm)
Gold is trending higher (1293.40 at 5.10pm)
The loonie is valued at U$0.7979

BCE acquires Manitoba Telecom in $3.9 billion deal
BCE Inc. is to acquire Manitoba Telecom for $3.9 billion in a friendly deal announced Monday. The firm said that it would make Winnipeg its Western Canada headquarters assuming the deal completes. Manitoba’s shareholders have been offered $40 in cash or equity. In a separate transaction BCE will sell some of Manitoba’s postpaid subscribers to Telus; this is partly to finance the acquisition but also intended to avoid competition issues.

Former Amaya boss pleads not guilty to securities allegations
David Baazov told Quebec’s securities regulator that he is not guilty of allegations relating to trading of stock in online gaming firm Amaya. The company’s former CEO was investigated by the Autorite des marches financiers and charged in March. The case will now be tried in a Quebec court.

Enbridge may ditch US natural gas division
The US natural gas business of Enbridge Energy Partners could be sold off following a 51 per cent decline in revenue in the first quarter to U$1.06 billion. Net income was down to 7 cents per unit, from 26 cents per unit a year earlier. The firm will now carry out a strategic review but no decision has yet been made.